Two-Year Note Auction Attracts Above Average Demand

(RTTNews) - The Treasury Department kicked off this week's series of announcements of the results of its long-term securities auctions on Tuesday, revealing this month's sale of $69 billion worth of two-year notes attracted above average demand.

The two-year note auction drew a high yield of 3.641 percent and a bid-to-cover ratio of 2.69.

Last month, the Treasury also sold $69 billion worth of two-year notes, drawing a high yield of 3.920 percent and a bid-to-cover ratio of 2.62.

The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.

The ten previous two-year note auctions had an average bid-to-cover ratio of 2.62.

The Treasury is due to announce the results of this month's auctions of $70 billion worth of five-year notes and $44 billion worth of seven-year notes on Wednesday and Thursday, respectively.